American Institute of Certified Planners (AICP) Practice Exam

A mandatory contribution in development projects refers to a requirement imposed by local governments, planning agencies, or other authorities to ensure that developers contribute to public benefits, often in response to the impacts their projects may have on the community. Fees-in-lieu of dedication are a prime example of such mandatory contributions. They are charged when developers opt to pay a fee instead of dedicating land for public use—such as parks or public spaces—as specified by local regulations.

These fees are typically calculated based on the anticipated benefit that would have been gained from the land dedication. The funds collected are then used to provide equivalent public amenities elsewhere, ensuring that community needs are met despite the developer’s choice not to dedicate land. This aligns with the principle of fair share; developers should contribute to the infrastructure or services that their projects will impact.

Other options listed do not represent mandatory contributions. Optional fees for community services and voluntary donations from property owners indicate scenarios where the contributor has the choice to participate or not. Tax reductions for developers may encourage development but do not require a specific contribution in return, thus not fitting the category of mandatory contributions.